Atlanta law firm King & Spalding LLP has won a $700 million judgment for Chevron Corp. in an arbitration between the energy giant and the government of Ecuador.
An international tribunal ruled that Ecuador must pay damages for delaying court rulings on commercial disputes with Chevron subsidiary Texaco Petroleum Co. for more than a decade.
The ruling by the Permanent Court of Arbitration in The Hague resolves some Texaco claims against the Ecuador government dating as far back as 1991.
The court determined that by refusing to rule on Texaco's claims, Ecuador violated international law by breaching an investment treaty with the United States.
The $700 million in damages includes principal and interest dating to Dec. 22, 2006, when Chevron and Texaco initially filed the arbitration. Further hearings will determine whether Ecuador owes more for taxes, interest and costs.
Chevron and other energy companies have additional arbitration actions pending against the Ecuador government.
